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Ayer OKs tax incentive for American Superconductor

By Brendan Lewis, Correspondent

Updated:
09/27/2017 08:53:39 AM EDT

AYER -- The old Cains Building in Ayer will soon be home to American Superconductor after Special Town Meeting Monday approved a tax agreement that will save the company money and help build the local economy, officials say.

A handful of residents, however, were clearly skeptical of American Superconductor's promise to stay in Ayer after the company stopped receiving discounts in their tax bill.

But, by the end of the night, a majority voice vote had authorized the town to enter into the Special Tax Agreement that will save American Superconductor Corporation (AMSC) nearly $500,000 in tax credits over the course of the 10-year agreement, which represents a 33 percent discount for the company.

Town officials said they took several months to vet the agreement and feel that it is a definite economic boon for the town in the long run. The agreement had been negotiated and crafted over the course of the summer by Ayer's economic development and town administration staff along with AMSC executives.

Ayer Director of Community and Economic Development Alan Manoian said that if Ayer wants to build up the town's economic profile, the town must take advantage of opportunities to entice 21st century industry to move into the town.

"We need to start making this happen and we think American Superconductor can be that start," said Manoian.

However, many Town Meeting voters commented on the fact that in order to entice this business to come into town, it needs to come directly out of their pockets.

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Town staff estimates the tax agreement will equal a $29 annual increase in the average taxpayer's bill, which goes down incrementally every year until the agreement ends.

"It seems to me that we should have some guarantee that if this doesn't go as planned that we as a town are made as whole as possible," said resident Mark Miller at Special Town Meeting.

Manoian informed residents there that if AMSC moves out within a year after the town's tax credit agreement runs out, they owe back half of the taxes saved over the 10 years. If they move out within two years of the agreement running out, they owe the town back 25 percent of the taxes saved.

AMSC CEO Daniel McGahn also spoke significantly about their plans to begin growing their company after moving into Ayer's Cains Building, which they have been eyeing since 2000 because it will accommodate their need for less space than their larger facility in nearby Devens.

He spoke about the need to find a suitable town and home for their plant that compliments their company's character and McGahn said that Ayer definitely fits.

He said they recently received government contracts and will look to carry those out in Ayer.

"We just received some contracts from the US Navy, and a very small part of our business is going to serve the US Navy by delivering ship protection systems to help the surface fleet deal with some of the threats that they see in the places that they go," said McGahn, who had attended along with CFO John Kosiba.

However, even minutes before the final vote was taken, some residents continued to voice their dislike in the tax credits.

"I still don't think we need to pay them for something that's in their best interest," said Nashua Street resident Sue Kennedy.

The tax increase to the average taxpayer will go down to $24, $18, and $15 in the second, third and fourth year's of the tax agreement, respectively. And the increases to residents continually go down until year 10 of the agreement.

AMSC will be bringing 82 jobs to Ayer, with an average annual salary of $108,000, according to Manoian.

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